> For the complete documentation index, see [llms.txt](https://docs.poolside.party/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.poolside.party/overview/amm/stable-pools.md).

# Stable Pools

Poolside V2 introduces Stable Pools designed for pegged assets that trade near parity and for highly correlated assets that trade at a known exchange rate. Poolside's implementation of a stableswap is different from that of existing offerings. The invariant curve we designed is specialized and optimized for receipt tokens like LSTs and yield-bearing stablecoins. \
\
The invariant curve is defined as follows:

$$
P = \frac{Y + K \sqrt{P\_{L}}}{X + K \sqrt{P\_{L}}}
$$

Poolside's stable curve is symmetric and aggressive compared to other stableswaps. This enables Poolside to compete with various DEX designs on order flows while protecting our LPs from unnecessary yield loss. Another key difference is that Poolside can calculate a fair price based on the underlying staked balances of LSTs and LRTs using Poolside Wrappers. This means that correlated tokens don't suffer divergence loss inside our Stable Pools as they do in other stableswaps.


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